Malaysia criticizes RI over plantation land grabbing

Malaysia criticizes RI over plantation land grabbing

KUALA LUMPUR (DPA): Malaysia wants firmer action by Jakarta to protect its plantation firms in Indonesia which have been hit by "land-grabbing" locals seizing large tracts of investment land, a news report said Monday.

Rafidah Aziz, the international trade and industry minister, said she would lead a trade mission to Indonesia in March to discuss Jakarta's policies on land ownership by foreign investors.

Many Malaysian plantation firms in Indonesia have complained that they have lost a major portion of their lands to locals, who seized the land which they claim belonged to their families.

"They just took over, claiming that it was their right to do so as their families were not adequately compensated," she was quoted as saying by the Star daily.

"The failure of the Indonesian government to be firm in handling cases like this is what is worrying Malaysian businessmen interested in investing in the country," she said.

Rafidah added there have also been complaints where the ownership of the joint venture land was suddenly changed without any regard to agreements already signed with foreign investors.

The problem of land ownership needed to be cleared up because many Malaysian companies were still keen to diversify or expand their operations in neighboring Indonesia, she said.

Rafidah said she also hopes that Jakarta would stand firm on the sale of 25 oil palm plantations covering 260,000 hectares in Indonesia by the Salim Group to a Malaysian company, Kumpulan Guthrie Berhad.

Guthrie won the bid last month to acquire the plantations for US$350 million, but the deal has been marred by protests by farmers and Indonesian politicians, who say it was against the national interest.